Company formation myths to refrain from

Starting off on a new venture is not easy especially when it comes to offshore company formation in UAE and then carrying out all the tasks. It can be confusing and intimidating but this does not in any sense mean you should refrain from it and completely drop the plan because there are many misguiding things which you would hear that we would like to debunk for you today.

  • Anyone can register company

This is a half truth as there are some hidden meanings behind this statement. While it does stand true that anyone can register for a company, it doesn’t mean that there are no restrictions or basic guidelines to appointing the directors and staff for the company. Some of these restrictions would mean that the director have to be of legal age, no past record of crime or bankruptcy and obviously they need to be qualified enough to run the business or company.

  • It’s a lengthy and time consuming process

It used to stand true in times when registering a company would mean standing in long unending lines and waiting for your turn to fill out the paperwork. This isn’t the case anymore because now almost everything happens online and it hardly takes a few days for the system to enrol your application and precede it for further processes. If you consider using an agent then the task becomes all the more easy and quick.

  • There’s a need of shareholders

This does not stand true because if you think that giving out several shares of your company to make it look real is the way to go then you can be highly mistaken, because as low as two shareholders can be included in the company formation that too just to show their equal share and ownership in the company. If you do end up sharing many different shares then you could be at a risk of exposure which a newly formed company doesn’t want to be on.

  • You have complete freedom to choose name

Again, the statement is true for only small of its part as you surely do have a reasonable degree of freedom to choose the name but if the name is already taken up or trademark of some other similar company in the industry then you will be restricted from using it.

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